KCS Amendments

Mr. Stout:
I understand from your e-mail to Lisa Mellencamp that Zachary May is out of
the office. I am helping Lisa out on this matter as an attorney in our
financial derivatives group. In addition, Stacy Dickson is handling all
matters relating to physical trades that have been done between Enron and
KCS. In addition to the pleadings, we are also preparing amendments to both
the physical and financial agreements taht currently exist between the
companies. Last week, I sent to Zachary May a draft of an amendment to the
financial master between Enron North America Corp. and KCS Energy Marketing.
Stacy Dickson will be sending you a revised draft of that document that adds
to it the amendments that we need to make to the physical agreements between
the companies which consist of 4 separate agreements. These amendments need
to be attached to the court pleadings and approved by the court. If you have
any questions, please call me at 713-853-3989.

Carol